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Dec 31, 2022
Sphere Entertainment Co Q2 2023 Earnings Report
MSG Entertainment posted strong Q2 FY2023 results with double-digit revenue growth and significant operating income gains.
Key Takeaways
MSG Entertainment reported Q2 FY2023 revenue of $642.2 million, up 24% year-over-year, driven by strong performances in its Entertainment and Tao Group Hospitality segments. Operating income more than doubled, and adjusted operating income rose 63%, reflecting robust holiday season events and increased sponsorships.
Revenue grew 24% year-over-year to $642.2 million.
Operating income increased 109% to $74.0 million.
Adjusted operating income rose 63% to $124.1 million.
Entertainment segment revenue jumped 44%, driven by the Christmas Spectacular and higher event-related revenues.
Sphere Entertainment Co
Sphere Entertainment Co
Sphere Entertainment Co Revenue by Segment
Revenue by Segment
Sphere Revenue
CapyFin.comMSG Networks Revenue
CapyFin.com Forward Guidance
The company anticipates completing the spin-off of its live entertainment business by March 2023 and expects MSG Sphere in Las Vegas to open in September 2023, positioning it for long-term growth.
Positive Outlook
- Spin-off of live entertainment business expected to close by March 2023.
- Opening of MSG Sphere in Las Vegas set for September 2023.
- Continued strong demand for live events.
- Positive momentum in sports bookings and sponsorships.
- Expansion of Tao Group Hospitality's global footprint.
Challenges Ahead
- Decline in MSG Networks revenue due to lower subscribers.
- Higher operating expenses in Entertainment and Tao segments.
- Increased professional fees related to spin-off costs.
- Higher employee compensation costs.
- Ongoing restructuring charges from cost reduction programs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income